RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:New Press Release - Copper Fox Appoints Manuel Gomez, CFA to the BoardDSV:
LOM EBITDA per year: $228M (from the PFS)
LOM Capex: $1.003B (from the PFS)
For every dollar invested, they expect to generate $0.23 (before tax & interest, etc.) on average per year.
SC:
LOM EBITDA per year (copper at $3.25, gold at $1500, moly at $10, silver at $20): $515M
LOM EBITDA per year (adjusted): $3.75 - $0.80 (AISC) x 353Mlbs CuEq per year: 1,041 US
AISC is based on Teck reporting a C1 cost of $0.60 per lb. Added $0.20 for the AISC.
LOM Capex: $4B (extreme case)
For every dollar invested, SC could generate $0.26 (before tax & interest, etc.) on average per year.
Even using an extreme $4B capex figure, SC could still generate a better bang for the buck, despite maybe having a NPV/capex ratio below 1.
Would a major prefer investing in:
- project 1 that generates most of it's EBITDA in the first 10 years and after drops significantly for the remaining 9 years.
- project 2 that has a steady stream of cash flows for at least 21 years.
I think project 2 provides less risk.
MoneyK